Chairman of Russia's Gazprom Board, Dmitry Medvedev attends the annual general meeting of the company's shareholders, 29 Jun 2007

Ukrainian President Viktor Yushchenko says Ukraine does not owe money to Russia's state-owned natural gas company Gazprom.

The chief supplier of natural gas to Ukraine says Kyiv owes $1.3 billion. It is threatening to cut supplies to Ukraine unless it is paid.

Gazprom chief Dmitry Medvedev said after talks Wednesday in Moscow with Ukrainian Energy Minister Yury Boikosaid that Ukraine has agreed to pay the debt.

But President Yushchenko said in Berlin that his government has no debts to Gazprom.

A price dispute between Ukraine and Gazprom in 2006 led to a cutoff of gas shipments to Ukraine. It also caused a severe natural gas shortage in the European Union, as the pipelines pass through Ukraine to the EU states.